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Wednesday, 13 January 2016

Crude palm Oil settled up

Crude palm Oil settled up by 0.48% at 416.9 due to pickup in demand in the spot market. Further, limited arrivals from producing belts too supported prices. According to latest data released by SEA, country has set a new record for highest import of palm products in Oil year 2014-15, which has created a glut in domestic market. Import of palm products during October 2015 is the highest in any single month at 1.11 mt. Exports too declining on concern over China’s slowing economy. December's palm exports from Malaysia, the world's second-biggest producer of palm oil by volume, fell 5%- 6% compared to the month before. Malaysian palm oil futures bounce back on Friday due to forecast of declining production. As per the reuters poll, Output is likely to have dropped to 1.36 million tonnes, down 17.8pc from November and the lowest since February 2015, a Reuters poll showed. However, concern over weak export demand and a narrowing spread between the tropical oil and soyoil capped further gain.

Trading Ideas: CPO trading range for the day is 408.7-422.5. Crude palm oil prices ended with gains due to pickup in demand in the spot market. According to latest data released by SEA, country has set a new record for highest import of palm products in Oil year 2014-15, which has created a glut. India's CPO purchases will climb only 100,000 tonnes to 9.7 million tonnes this marketing yearCrude palm oil prices in spot market dropped by 2.30 rupees and settled at 405.50 rupees.